If you own a second home in the UK which is occupied as your own private Holiday Home for yourself and friends/family, you need to make sure you have adequate property insurance.
A standard home insurance policy would normally only extend to cover insured’s main residence, and therefore may not be appropriate for properties which are not occupied regularly overnight. A specialist holiday home insurance policy to cover second homes is strongly recommended.
There are a range of policies available through an Insurance Broker or via the internet offering varying premiums and cover solutions which should extend to cover the following:-
Buildings and Contents Insurance – please pay particular attention to inner policy limits for valuable items, ie fine art, antiques at the property or cash, silver etc.
Public Liability – to protect your legal liability following an accident or injury to members of the Public – usually up to £2 million or £5 million limit of indemnity.
Employers Liability – cover to protect your legal liability following an accident or injury to any domestic employees ie cleaners, gardeners or maintenance staff
Alternative cost of Accommodation – additional cost of alternative accommodation in the event of damage to the property following an insured peril – ie fire, flood, storm damage etc.
Property Legal Protection Insurance – to provide cover for legal costs and expenses in certain circumstances including Property Disputes etc.
When seeking insurance, you should particularly check the following requirements:-
Minimum Security – is the insurance subject to the property having particular locks or even an intruder alarm.
Inspection Warranty – will the property need to be inspected at regular intervals when not occupied, ie weekly or fortnightly?
Winter Warranty – will the heating need to be left on at a set level, or systems drained in the event of unoccupancy during the winter months?
It is very important that you are aware of the policy conditions and warranties applicable as failure to comply could prejudice your insurance cover in the event of a claim or even result in your policy being cancelled.
The sums insured should be based upon the cost of rebuilding the property, including such costs for removal or debris and architects fees and in respect of the contents the sum should be based upon replacing the contents ‘as new’.
It is imperative that these figures are correct, as most policies will contain the ‘average’ clause. Therefore in the event of underinsurance, any claim settlement could be reduced by the amount of underinsurance.
Some insurers will offer a premium reduction for an increased policy excess or say £250 or even £500, so this is worth considering as cost saving factor.
 Melanie Birchell Cert CIII am a Director of Pavey Group Insurance Brokers, responsible for our ‘Leisuresure’ Department which specialises in Tourism and Leisure Insurance. We have operated an exclusive scheme for Holiday Property Insurance for over ten years, known as ‘Cottagesure’. Tel. 0800 5335600 E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it Website: www.cottagesure.co.uk |
